INDUSTRY ANALYSIS

Fast Food Industry

Fast Food Industry

Introduction

The report will present key features of fast food industry. The report will critically analyze the industry by highlighting the facts of the industry. The report will cover three different sizes of players of fast food industry where one will be the leading player, second will be emerging and third will be the company which is in alarming situation or at risk. The report will analyze each player on the basis of its external environment, customer base and financial performance.

Analysis of Fast Food Industry

It has been seen widely that fast food industry has very intense competition and the number of players are very high. The main reason behind this fact is that initial setup cost is not high and a fast food business can be started within limited resources. It is a global phenomenon that there is no strict barrier to entry and exist which has made this field very diversified. The growth of a fast food business depends upon the customer base and franchising. The franchising has played a vital role in the promotion of fast food business. It actually increases the reach of the business to customers and assists in developing good image of the brand. The franchise also creates regular customers because if a customer finds his or her favourite brand near to home and office then there are fair chances that the customer will become regular customer. The businesses usually faces issues of demand and in this business the demand is ever increasing because population is on increasing trend. Therefore, it is quite clear that fast food players will be having large number of customers at any given time. The most important feature of this business is that it remains flourishing in the time of recession because the disposable income of the customers declines and they cannot afford expensive restaurants which provide impetus to increase in sales of fast food restaurants (Cappelli et.al, 2010, pp. 55).

The fast food industry is directly attached to the life style. Those countries where public have more fast life style seems to be good for fast food industry as compared to countries where public have slow life style. For example, the sales of MC Donald are higher in United States of America as compared to sales in India because American life style is far faster than he Indians. There is a direct impact of ...